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There have been a number of insider stock buys over the last month. Having access to non-public information, insiders are often ahead of the game.

More importantly, as insiders tie their personal wealth to these companies, they provide a useful confidence signal for investors. Let’s examine some of the more interesting companies in the present macro landscape.

Eton Pharmaceuticals, Inc. (Nasdaq: ETON)

As one of the major ETON shareholders, Opaleye Management Inc. raised its stake by $434,000 at the stock price range between $6.77 and $7.22 per share. In September, Opaleye made two insider purchases worth 107,500 shares at a price range between $4.65 and $4.75 per share. 

ETON stock is currently priced at $7.53 per share, having gained 63.83% value year-to-date. This is nearly double the 52-week average of $4.08, while the all-time high for ETON stock was $10.07 in February 2021.

Eton’s drug pipeline is largely focused on metabolic genetics and endocrinology. In the former category, the company rolled out four products: Carglumic Acid, PKU Golike, Betaine Anhydrous and Nitisinone. In pediatric endocrinology, Eton commercialized Alkindi Sprinkle for treating adrenal gland insufficiency.

The common thread across these drugs is the treatment of rare to ultra-rare and hereditary diseases. Most recently on October 3rd, Eton initiated the acquisition of Increlex (mecasermin injection) from French Ipsen Pharmaceuticals, which should be completed by the end of 2024.

In August’s Q2 2024 earnings call, Eton reported 40% YoY sales growth to $9.1 million. However, the company generated a $2.9 million net loss from the net positive $4.6 million in the year-ago quarter. Much of this is owed to the tripling of R&D expenses alongside G&A expenses. 

However, much is expected of Eton’s ET-400 and ET-600 development in 2025. The latter is Eton’s candidate for diabetes insipidus affecting about 1 in 25,000 people.

AngioDynamics, Inc. (Nasdaq: ANGO)

On October 7th, the company’s CEO James C. Clemmer bought 20,000 ANGO shares at a price of $6.03 per share, worth $120,600. This raised Clemmer’s stake to 681,582 shares out of 40.63 million outstanding shares.

Also in the biotech sector, AngioDynamics develops medical devices in radiology, nephrology and surgery. One such innovative tool is NanoKnife to ablate soft tumor tissue with high-voltage electrical current. Unlike heat ablation, this more precise approach lessens complications and is critical for unresectable tumors in liver and pancreas.

In October’s fiscal Q1 2025 earnings, AngioDynamics reported $67.5 million net sales, divided between Med Tech and Med Device divisions. The former category tracked 8.7% growth while the latter declined 3.6% YoY. 

Compared to a year-ago quarter net income of $45.8 million, the company suffered a $12.8 million net income loss.AngioDynamics is in the process of streamlining its operations, evidenced by the sale of midline products such as peripherally inserted central catheter (PICC) to Spectrum Vascular in February. 

Instead, the company is focusing on higher gross-margin products in the Med Tech division, which explains the aforementioned growth disparity. Year-to-date, ANGO stock is down 21% to current price of $6.35 against the 52-week average of $6.56 per share.

Nasdaq’s average price target for ANGO has a substantial upside potential at $13 per share based on 6 analyst inputs.

Tile Shop Holdings, Inc. (Nasdaq: TTSH)

Standing out from the biotech crowd in this insider buys roundup, tile Shop Holdings sells natural stone and man-made tiles from ceramic to luxury vinyl. Insiders from Pleasant Lake Partners and Pleasant Lake Onshore Feeder Fund, via Fund 1 Investments manager, bought $78k worth of TTSH shares on October 4th and 8th at a price range between $6.4202 and $6.4332 per share. 

TTSH stock is currently priced at $6.48 against the 52-week average of $6.53 per share. In that period, the stock’s ceiling was $7.67 while the all-time high of $26.23 was all the way back in July 2013. Year-to-date, TTSH stock is down nearly 11% but has gone up 8.51% over the last 30 days.

Catering to both retail and professional markets, Tile Shop has a direct sale business model through physical stores while also having in-house manufacturing. This makes the company sensitive to consumer behavior and their spending capacity for home improvements and home purchases.

Although the US market is largely stagnant, entering the lower interest rate regime could flip the market. According to the Consumer Financial Protection Bureau, ~60% of 50.8 million active mortgages have under -4% interest rate, which disincentivized home listings.

In Q2 2024 earnings, Tile Shop reported $91.4 million net sales, a YoY decline of 7.3% as expected in the current market. The company has $199.5 million in total liabilities of which $112.8 million is long-term debt. However, ahead of the next market cycle, Tile Shop significantly increased its cash holdings, from $8.6 million to $25.3 million.

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